Orora's Cans Business Continues to Outperform Glass

Orora has three distinct segments: cans and glass bottles in Australia, and Saverglass, its global premium and ultrapremium glass bottle segment. In the Australian can business, sales are mostly to its three main customers, Coca-Cola, Asahi, and Suntory. However, its enhanced focus on premiumization supports profit margins with additional sales to craft breweries and niche beverages such as kombucha and other small brands. We expect this to complement the firm’s existing contracts, providing greater capacity utilization at its existing plants. Niche customers require a higher degree of customization, such as multicolor can printing, leading to higher margins for these sales.